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Lamprell H1 profits drop, bidding for $5.2m in new projects

Lamprell H1 profits drop, bidding for $5.2m in new projects
UAE-headquartered rigbuilder Lamprell reported a more than halving of net profit the H1 2015, and is bidding for $5.2bn in new projects with a greater focus on the Middle East.

London Stock Exchange-listed Lamprell reported a first half profit from continuing after tax of $20.3m, compared to $46.1m in the same period in 2014. Revenues also dropped sharply to $351.4m in the first half of 2015, compared to $632.2m in the first six months of 2014. The company noted that revenues in the first of 2014 were an “exceptional result” due to the phasing of construction activity.

Lamprell won one of only three jack-up rigs ordered worldwide in the first half of the year, with a contract from NDC. It has also won further awards for Modules from Petrofac.

Commenting on the market in his review, Lamprell ceo james Moffat said: “After a strong start this year with the group working on 10 concurrent projects earlier this year, the rig refurbishment business has seen a slow-down in recent months. We are seeing some clients stacking jack-up rigs until market conditions improve and we are assisting various clients with this stacking activity.”

With downturn in the offshore and oil and gas markets he said there “intense competition” for the significantly reduced number of projects in the market.

“Our bidding pipeline remains strong at $5.2bn of projects although it might be anticipated that volatile market conditions may result in delays,” Moffat said.

“We now have a greater focus on regional activity where there continue to be prospects for new orders, particularly in the Middle East where the group has a strong track record and a competitive advantage with its close proximity to the projects.”